Mobile Finance Report 2019
In their newly released “Mobile Finance Report 2019”, mobile analytics platforms Adjust and App Annie present a global benchmark of Banking and Payment apps. The report describes three key trends, based on exhaustive research of downloads, usage and retention rates:
1. The unbanked are hotspots of growth
Mobile has opened personal finance to the world’s unbanked. A massive 143 million mobile money accounts were opened in 2018 globally, according to mobile trade body the GSMA. These users were concentrated in Southeast Asia and Africa, areas with few banking options. A key driver is the expansion of mobile money and apps that can deliver it into places banks have never been before. While there’s still room to scale — 1.7 billion adults remained unbanked — reaching them remains a challenge, with infrastructure and local regulation slowing progress. Looking at the proliferation of finance apps, the APAC countries are still the global frontrunners.
But based on an examination of app downloads for Europe and North America, the report predicts that finance apps are poised for exponential growth globally.
“Apps have transformed the customer experience and received huge investment. Over the next decade, Finance app companies will be here to stay, but may be the subject of disruption themselves as more players come into the market. Consequently, customers will become more discerning, and it may be factors such as secure mobile cybersecurity that prove to be more important when choosing a mobile money app.”
Monty Munford – Venture Partner, BC7, The Economist Contributor and Tech Speaker
2. Banking apps beat payment apps in terms of customer retention
Neobanks are new contenders that offer online-only services that skirt regulation by partnering with established institutions. Their payment apps create an edge with superior data and analytics capabilities to build deeper relationships with customers. However, payment app post-install performance is a challenge. In comparison, banking app users retain at rates that are consistently and significantly higher — and less erratic —than the global average for all other apps, including Music and News, combined. More importantly, the retention curve for banking apps reveals ample opportunities to re-engage and retarget users who are showing signs of lapse.
Overall, getting users to engage more with an app after the install is a tough challenge, especially in finance. Research suggests a shortcut: brands that pursue personalisation in all they do are finding success.
“Taking a consumer-first approach to finance is the next evolution”
Vishal Korlipara, Growth Marketing Manager at app company Credit Karma
See also our earlier article on neobanks.
3. Super apps gain traction as payments soar
Another revolution is happening, with payment apps primed to become the new way to pay. Physical currency is slowly disappearing as people handle more transactions with their phones. Asia has given rise to the “super app,” which combines aspects of social media with the ability to transfer money. These apps offer a portal to a mix of services, often bundling messaging and marketplaces. China, which is home to the super apps WeChat and Alipay, is naturally the biggest driver of mobile money uptake in the region. Its growth is closely followed by India. The West is only just catching on.
You can download a free copy of the Mobile Finance Report 2019 with this link (registration required):